bq. bq. This is the inner quoted paragraph.
bq. This is the outter quoted paragraph.

It doesn't work. Textile processes paragraphs by line and does not try to do any nesting. I have a few options:

Use something like "bq. <blockquote>Inner paragraph</blockquote>" to wrap an HTML <blockquote/> on the same line as the blockquote. However it does not let me include another paragraph cleanly inside the same blockquote, and it includes the inner blockquote tag inside a paragraph tag, which is wrong.

Turn off Textile completely for that article, and use HTML directly. This gives me the full control, but I also loose useful things like Smarty Pants-like transformation.

At the end I picked (2) as at least it gives me properly validated HTML. I am just wondering, for those who are familiar with Textile -- how do you do nested blockquotes in Textile/TextPattern?